A — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($118.17)
DCF	$52.28	-55.8%
Graham Number	$50.13	-57.6%
Reverse DCF	—	implied g: 20.2%
DDM	$21.01	-82.2%
EV/EBITDA	$118.11	-0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $830.00M

Near-term growth (yrs 1–5)(%)Rev: 7.0% / EPS: -3.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.65%

Computed WACC: 10.65%

Cost of equity (Re)11.44%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)3.50%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)90.90%

Debt weight (D/V)9.10%

Results

Intrinsic Value / share$40.19

Current Price$118.17

Upside / Downside-66.0%

Net Debt (used)$1.60B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-1.0%	3.0%	7.0%	11.0%	15.0%
7.0%	$53.44	$65.24	$78.93	$94.73	$112.90
8.0%	$42.73	$52.20	$63.17	$75.83	$90.37
9.0%	$35.32	$43.18	$52.28	$62.77	$74.80
10.0%	$29.88	$36.58	$44.31	$53.22	$63.41
11.0%	$25.73	$31.53	$38.23	$45.92	$54.73

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.57

Book Value / share($)Yahoo: $24.44

Results

Graham Number$50.13

Current Price$118.17

Margin of Safety-57.6%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.65%

Terminal growth rate(%)

Computed WACC: 10.65%

Cost of equity (Re)11.44%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)3.50%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)90.90%

Debt weight (D/V)9.10%

Results

Current Price$118.17

Implied Near-term FCF Growth25.0%

Historical Revenue Growth7.0%

Historical Earnings Growth-3.6%

Base FCF (TTM)$830.00M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.02

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$21.01

Current Price$118.17

Upside / Downside-82.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.93B

Target EV/EBITDA multipleCurrent: 18.2×

Net Debt($B)Default: $1.60B

Results

Implied Equity Value / share$118.11

Current Price$118.17

Upside / Downside-0.0%

Implied EV$35.00B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.60B	$1.60B	$1.60B	$1.60B	$1.60B
14.2x	$90.85	$90.85	$90.85	$90.85	$90.85
16.2x	$104.48	$104.48	$104.48	$104.48	$104.48
18.2x	$118.11	$118.11	$118.11	$118.11	$118.11
20.2x	$131.75	$131.75	$131.75	$131.75	$131.75
22.2x	$145.38	$145.38	$145.38	$145.38	$145.38

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